Why Was Adam Smith so Important?
Adam Smith was important because he wrote “The Wealth of Nations,” which is a bible of capitalism, and he also achieved the firm comprehensive system of political economy. He was born in Scotland and was a known philosopher and political economist. He studied moral philosophy at Glasgow University. Smith first published a volume called “An Inquiry into the Nature and Causes of the Wealth of Nations.”
During his time, a country’s wealth was estimated by the amount of gold and silver it owned. Smith proposed that the nation’s wealth should not be measured through this metric, but through its total production and commerce, which today is known as gross national product. He also talked about the concept of division of labor, which would help to increase production through specialization.
Smith believed that free market economies are productive and helpful to the society. He said that if people were set free to work by themselves, it would lead to economic property and growth to all. He earned a stable reputation after writing “The Wealth of Nations,” which is one of the most influential books ever written. Smith was named the rector of Glasgow University in 1787. He died 3 years later.